REG - Dewhurst PLC - Half-year Report

DewhurstAnnouncement

13/06/2018 07:05

RNS Number : 1824R
Dewhurst PLC
13 June 2018
 


The information contained within this announcement is deemed to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement, this inside information is now considered to be in the public domain. 
 
 
Dewhurst plc (the "Group")
 
Interim Results for the 6 months ended 31 March 2018
 
Directors' Interim Report
 
FIRST HALF
Although sales and profit fell in the first half of the year, on a constant currency basis and adjusting for a divested business, underlying sales were actually slightly up. Overall, Group revenue decreased by 5% to £24.7 million (2017: £26.1 million) and profit before tax decreased 4% to £2.8 million (2017: £3.0 million). Operating profit of £2.5 million (2017: £3.1 million) is down 19% on last year with earnings per share declining to 23.2p (2017: 25.8p).
 
As mentioned in the 2017 Full Year Statement, demand for keypads was weaker and this continued through the first half of 2018 and was the most significant contributor to the lower sales.  Another significant negative impact on the results was the strengthening of Sterling. The currency movements had a 5% negative impact on both sales and profits to the value of £1.0 million and £0.2 million respectively. In addition we sold the door and cab division of ERM which reduced sales by £1.1m in the period. Elsewhere, Canada continued its strong growth, the UK businesses varied but overall were up, and Australia also varied, but with a full half year contribution from P&R was also up in total.    
 
The Group balance sheet remains strong with cash at the period end of £18.0 million (2017: £16.0 million).
In the second half, after the date of the balance sheet reported here and as announced on 4 June 2018, Dewhurst acquired A. & A. Electrical Distributors Limited (A&A). The terms of the acquisition are set out in the announcement, but it will utilise a significant amount of the Group's free cash. However the acquisition is expected to be earnings enhancing in the second half.
 
OUTLOOK
In most of our markets the business climate seems to be reasonably positive at present.  The exception remains the UK where there is still some uncertainty about the short term and the economic situation is highly dependent on political decisions.  Although keypad sales have picked up a little in the last couple of months we do expect a declining trend on these products over the long term. However we expect to see a positive impact from the contribution of A&A.  Current exchange rate levels will continue to be a drag on the Group, more so if Sterling were to further strengthen.  The second half may see a period of consolidation, but on balance we are encouraged by the future growth prospects for the Group.
 
DIVIDENDS
The Directors have declared an interim dividend of 3.50p per ordinary share (2017: 3.50p) which amounts to £295,000 (2017: £295,000). The interim dividend is payable on 21 August 2018 and will be posted on 16 August 2018 to shareholders appearing in the Register on 6 July 2018 (ex-dividend date being 5 July 2018).
 
A final 2017 dividend of 8.50p (2016: 8.00p) which amounted to £716,000 (2016: £678,000) was approved at the AGM held on 8 February 2018 and was paid on 14 February 2018 to members on the register at 19 January 2018.
 
By Order of the Board
 
J C SINCLAIR
Finance Director & Secretary
12 June 2018
 
 
Dewhurst plc
 
The unaudited consolidated statement of comprehensive income, balance sheet, statement of changes in equity and cash flow statement of Dewhurst plc and its subsidiaries for the half-year ended 31 March 2018, as compared with the corresponding half-year ended 31 March 2017 and the year ended 30 September 2017, shows the following results:
 
Consolidated statement of comprehensive income




 


Half year


Half year


Year




 


ended


ended


ended




 


31 March


31 March


30 September




 


2018


2017


2017




Continuing operations


£000's


£000's


£000's




 


 


 


 




Revenue


24,669


26,070


52,890




Operating costs


(22,163)


(22,960)


(46,646)




Operating profit


2,506


3,110


6,244




 


 


 


 




Profit on business divestment 1


439


-


-




Finance income


52


52


117




Finance costs


(152)


(204)


(395)




Profit before taxation


2,845


2,958


5,966




Taxation


Est. (894)


Est. (773)


(1,345)




Profit for the financial period


1,951


2,185


4,621




 


 


 


 




Other comprehensive income:


 


 


 




Actuarial gains/(losses) on the defined benefit pension scheme


Est. (485)


Est. 1,009


3,672




Current tax effect


-


-


-




Deferred tax effect


82


(172)


(624)




Total that will not be subsequently reclassified to income statement


(403)


837


3,048




 


 


 


 




Exchange differences on translation of foreign operations


(1,393)


577


(104)




Deferred tax effect


237


(98)


18




Total that may be subsequently reclassified to income statement


(1,156)


479


(86)




Other comprehensive income/(expense) for the period, net of tax


(1,559)


1,316


2,962




Total comprehensive income for the period


392


3,501


7,583




 


 


 


 




Profit for the period attributable to:


 


 


 




Equity shareholders of the company


1,822


2,112


4,445




Non-controlling interests


129


73


176




 


1,951


2,185


4,621




 


 


 


 




Total comprehensive income for the period attributable to:


 


 


 




Equity shareholders of the company


336


3,396


7,428




Non-controlling interests


56


105


155




 


392


3,501


7,583




 


 


 


 




Basic and diluted earnings per share


23.16p


25.82p


52.65p




Dividends per share


3.50p


3.50p


12.00p




 
 
1 This relates to ERM selling its Winter & Bain division to Elevator Equipment Corporation
 
 
Dewhurst plc
 
Consolidated balance sheet




 


Half year


Half year


Year




 


ended


ended


ended




 


31 March


31 March


30 September




 


2018


2017


2017




 


£000's


£000's


£000's




Non-current assets


 


 


 




Goodwill


4,252


4,829


4,575




Other intangibles


94


89


98




Property, plant and equipment


9,181


9,554


9,267




Deferred tax asset


1,850


2,086


1,641




 


15,377


16,558


15,581




 


 


 


 




Current assets


 


 


 




Inventories


4,947


5,108


5,566




Trade and other receivables


9,873


11,275


10,011




Cash and cash equivalents


18,006


16,010


18,087




 


32,826


32,393


33,664




Total assets


48,203


48,951


49,245




 


 


 


 




Current liabilities


 


 


 




Trade and other payables


5,139


5,824


5,567




Current tax liabilities


239


223


368




Short-term provisions


252


544


326




 


5,630


6,591


6,261




Non-current liabilities


 


 


 




Retirement benefit obligation


11,716


14,890


11,751




Total liabilities


17,346


21,481


18,012




Net assets


30,857


27,470


31,233




 


 


 


 




Equity


 


 


 




Share capital


842


842


842




Share premium account


157


157


157




Capital redemption reserve


295


295


295




Translation reserve


886


2,481


1,969




Retained earnings


27,672


22,717


26,969




Total attributable to equity shareholders of the company


29,852


26,492


30,232




Non-controlling interests


1,005


978


1,001




Total equity


30,857


27,470


31,233




 
 
Dewhurst plc
 
Consolidated statement of changes in equity
 
For the period ended 31 March 2018




 


 


 


 


 


 


 


 




 


Share


Share


Capital


Translation


Retained


Non


Total




 


capital


premium


redemption


reserve


earnings


controlling


equity




 


 


account


reserve


 


 


interest


 




 


£(000)


£(000)


£(000)


£(000)


£(000)


£(000)


£(000)




 


 


 


 


 


 


 


 




At 1 October 2017


842


157


295


1,969


26,969


1,001


31,233




Profit for the period


-


-


-


-


1,822


129


1,951




Other comprehensive income and expense


 


 


 


 


 


 


 




Exchange differences on
translation of foreign operations                   


 
-


 
-


 
-


 
(1,320)


 
-


 
(73)


 
(1,393)




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
(485)


 
-


 
(485)




Deferred tax effect


-


-


-


237


82


-


319




Total comprehensive income


-


-


-


(1,083)


1,419


56


392




Dividends paid


-


-


-


-


(716)


(52)


(768)




 


 


 


 


 


 


 


 




At 31 March 2018


842


157


295


886


27,672


1,005


30,857



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
For the period ended 31 March 2017




 


 


 


 


 


 


 


 




 


Share


Share


Capital


Translation


Retained


Non


Total




 


capital


premium


redemption


reserve


earnings


controlling


equity




 


 


account


reserve


 


 


interest


 




 


£(000)


£(000)


£(000)


£(000)


£(000)


£(000)


£(000)




 


 


 


 


 


 


 


 




At 1 October 2016


847


157


290


2,034


20,663


589


24,580




Profit for the period


-


-


-


-


2,112


73


2,185




Other comprehensive income and expense


 


 


 


 


 


 


 




Exchange differences on
translation of foreign operations                   


 
-


 
-


 
-


 
545


 
-


 
32


 
577




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
1,009


 
-


 
1,009




Deferred tax effect


-


-


-


(98)


(172)


-


(270)




Total comprehensive income


-


-


-


447


2,949


105


3,501




Shares repurchased


(5)


-


5


-


(217)


-


(217)




Shares Issued 2


-


-


-


-


-


311


311




Dividends paid


-


-


-


-


(678)


(27)


(705)




 


 


 


 


 


 


 


 




At 31 March 2017


842


157


295


2,481


22,717


978


27,470



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
2 This relates to P&R Liftcars Pty Ltd selling shares to Roy Peat in proportion to his 25% non-controlling interest.
 
 
Dewhurst plc
 
Consolidated statement of changes in equity (cont'd)
 
For the year ended 30 September 2017




 


 


 


 


 


 


 


 




 


Share


Share


Capital


Translation


Retained


Non


Total




 


capital


premium


redemption


reserve


earnings


controlling


equity




 


 


account


reserve


 


 


interest


 




 


£(000)


£(000)


£(000)


£(000)


£(000)


£(000)


£(000)




 


 


 


 


 


 


 


 




At 1 October 2016


847


157


290


2,034


20,663


589


24,580




Profit for the year


-


-


-


-


4,445


176


4,621




Other comprehensive income and expense


 


 


 


 


 


 


 




Exchange differences on
translation of foreign operations                   


 
-


 
-


 
-


 
(83)


 
-


 
(21)


 
(104)




Actuarial gains/(losses) on defined benefit pension scheme


 
-


 
-


 
-


 
-


 
3,672


 
-


 
3,672




Deferred tax effect


-


-


-


18


(624)


-


(606)




Total comprehensive income


-


-


-


(65)


7,493


155


7,583




Shares repurchased


(5)


-


5


-


(217)


-


(217)




Shares issued 2


-


-


-


-


-


311


311




Dividends paid


-


-


-


-


(970)


(54)


(1,024)




 


 


 


 


 


 


 


 




At 30 September 2017


842


157


295


1,969


26,969


1,001


31,233



 
 
 
 
 
 
 
 
 
 
 
 
 
 



 
 
2 This relates to P&R Liftcars Pty Ltd selling shares to Roy Peat in proportion to his 25% non-controlling interest.
 
 
 
These half-year abbreviated financial statements are unaudited and do not constitute statutory accounts within the meaning of Section 435 of the Companies Act 2006. The results for the year ended 30 September 2017 set out above are abridged.  Full accounts for that year reported under IFRS, on which the auditors of the Company made an unqualified report have been delivered to the Registrar of Companies.
 
The presentation of these Interim Financial Statements is consistent with the 2017 Financial Statements and its accounting policies, but where necessary comparative information has been reclassified or expanded from the 2017 Interim Financial Statements to take into account any presentational changes made in the 2017 Financial Statements or in these Interim Financial Statements.
 
 
Dewhurst plc
 
Consolidated cash flow statement




 


Half year


Half year


Year




 


ended


ended


ended




 


31 March


31 March


30 September




 


2018


2017


2017




 


£000's


£000's


£000's




Cash flows from operating activities


 


 


 




Operating profit


2,506


3,110


6,244




Depreciation and amortisation


431


406


975




Additional contributions to pension scheme


(673)


(673)


(1,343)




Exchange adjustments


(706)


178


(49)




(Profit)/loss on disposal of property, plant and equipment


(9)


(9)


21




 


1,549


3,012


5,848




(Increase)/decrease in inventories


619


(8)


(703)




(Increase)/decrease in trade and other receivables


138


(974)


290




Increase/(decrease) in trade and other payables


(428)


337


202




Increase/(decrease) in provisions


(74)


(10)


(228)




Cash generated from operations


1,804


2,357


5,409




Interest paid


-


-


(2)




Tax paid


(681)


(725)


(968)




Net cash from operating activities


1,123


1,632


4,439




 


 


 


 




Cash flows from investing activities


 


 


 




Acquisition of business and assets


-


(1,356)


(933)




Proceeds from business divestment 1


439


-


-




Proceeds from sale of property, plant and equipment


12


25


52




Purchase of property, plant and equipment


(554)


(601)


(978)




Development costs capitalised


-


-


(82)




Interest received


52


52


117




Net cash generated from/(used in) investing activities


(51)


(1,880)


(1,824)




 


 


 


 




Cash flows from financing activities


 


 


 




Issue of share capital - non-controlling interest element 2


-


311


-




Purchase of own shares


-


(217)


(217)




Dividends paid


(768)


(705)


(1,024)




Net cash used in financing activities


(768)


(611)


(1,241)




 


 


 


 




Net increase/(decrease) in cash and cash equivalents


304


(859)


1,374




Cash and cash equivalents at beginning of period


18,087


16,674


16,674




Exchange adjustments on cash and cash equivalents


(385)


195


39




Cash and cash equivalents at end of period


18,006


16,010


18,087




 


 


 


 




1 This relates to ERM selling its Winter & Bain division to Elevator Equipment Corporation
2 This relates to P&R Liftcars Pty Ltd selling shares to Roy Peat in proportion to his 25% non-controlling interest.
 
For further details please contact:
 
Dewhurst Plc                                                                                 Tel: +44 (0) 208 744 8200
Richard Dewhurst, Chairman
Jared Sinclair, Finance Director
www.dewhurst.plc.uk
 
Cantor Fitzgerald Europe                                                                Tel: +44 (0) 207 894 7000
David Foreman / Will Goode (Corporate Finance)
Alex Pollen (Sales)
 
 




This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
IR GGURCQUPRGQP